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Debt Recovery, Restructuring & Insolvency

CM Advocates > Debt Recovery, Restructuring & Insolvency

Member’s Voluntary Liquidation of Companies and Limited Liability Partnerships in Kenya.

Member’s Voluntary Liquidation of Companies and Limited Liability Partnerships in Kenya

Liquidation in simple language is simply closing down/ killing off or winding up a business. In legal speak, liquidation involves the process of collecting all the business’s property, converting that property into cash, and distributing the cash to various creditors. Liquidation of businesses can occur in one of two ways, one can legally close down a business. The other option is striking off. ...

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Implication of Irregularities in the Distress for Rent process; An analysis of section 15 of the Distress for Rent Act.

Implications of irregularities in the distress for rent process

Distress for rent is the seizure of a tenant’s goods for failure to pay rent with a view of selling them to recover the outstanding rent arrears. The Distress for Rent Act as read with the Auctioneers Act and the Rules provide the Legal Framework for the distress for rent process. ...

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Of the Company, by the Administrator, for the Creditors” – a commentary of the High Court Rulings dated 6th January 2023 in the Cytonn Administration proceedings

cytonn administration proceedings

Over the past few years, holders of debentures executed pre – 2015 have at the point of enforcing the same been met with the question –to appoint a receiver or an administrator? ...

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Corporate Insolvency: Administration-Death by a Thousand Cuts OR Corporate Rescue Measure?

corporate insolvency

An Administration Order can only be granted by the Insolvency Court once the conditions under Section 531 of the Insolvency Act are satisfied, to wit, a company is unable to pay its debts and if the order is made, the company is reasonably likely to achieve an objective of the administration....

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The Duties of Directors in a Financially Distressed or Insolvent Company in Kenya

As therein indicated, under section 143 of the Companies Act, a director must act in the way which he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members (shareholders) as a whole. ...

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Financial distress not a sufficient reason for grant of an Administration Order; an exposition of Section 531 of the Insolvency Act, 2015

The Insolvency Act, 2015 (hereinafter referred to as “the Act) introduced the option of placement of a company under administration as opposed to the making of a liquidation order as soon as a company presents signs of insolvency....

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PRE-INSOLVENCY MORATORIUM The Stopgap Solution for Financially Distressed Companies

The existence of any business depends on how best it is managed, and the strategies put in place to ensure its eternity. To stay in business and possibly grow, companies take credit which in some instances remain unpaid when a company is facing financial challenges....

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